Source: Happyornot.com
Translation: feedbacksmiley.ae
Customer experience-13.04.2023
What is NPS and how does it work?
NPS is often considered the gold standard in customer experience. First developed in 2003 by Bain and Company, it is now used by millions of companies to measure and track how they are perceived by their customers. The system is based on a single question asking customers to indicate on a scale of 0-10 how likely they are to recommend a company to a friend or colleague. The results are then grouped into three categories: detractors (customers giving a score of 0-6), passives (customers giving a score of 7-8), and promoters (customers giving a score of 9-10).
When to use NPS and what it measures
NPS is appropriate when you want to measure how likely customers are to return, or when you want to know how loyal your customers are to your brand. It is based on a single question, typically measured by the standard NPS survey with 11 scales, with results displayed on a scale from -100 to +100. It is a good measure to see if your customers would use your company’s services again.
Benefits as a management tool
NPS provides insight into long-term loyalty and is a good tool for management because it can be correlated to greater business growth. By tracking scores over time, companies can see if their customer satisfaction is improving or declining. This information can be used to identify areas where improvements are needed, and to make decisions about how to improve the customer experience.
Limitations and how to overcome them
The NPS system is easy to use and intuitive, but it is usually not specific enough. Companies need to supplement it with other statistics or surveys to get a more complete picture of customer satisfaction. Moreover, some customers are reluctant to recommend a company to others even if they are satisfied with the service received. To overcome these limitations, it is important to use NPS in conjunction with other tools and to take a holistic approach to customer satisfaction measurement.
How HappyOrNot can help with NPS
HappyOrNot provides a calculation to convert the Happy Index into an NPS. This allows companies to use real-time customer feedback data to measure their NPS scores and track them over time. Learn more about HappyOrNot Analytics.